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BitMEX Research: Cryptocurrency holdings are expensive for companies, and shareholder returns will be hurt in the long term

examples compiled by BitMEX Research of the "most notable" advisors and asset management agreements of cryptocurrency holding companies show that Bitcoin holding companies, including Anthony Pompliano's BRR listed on Nasdaq, are well-known. This newly listed company announced a $750 million deal that will see shareholders pay 5% of its issued share capital during a 10-day trading process, plus a portion of the profits from the rise in Bitcoin.

According to BitMEX Research, these profits will be absorbed by Inflection Points Inc., founded by Pompliano. The fees of other cryptocurrency holding companies are equally staggering, slowly siphoning cash from companies that promise long-term value to investors.

Many publicly listed companies have digital assets worth billions of dollars on their balance sheets, but they have disclosed that they will pay advisors and asset managers annual fees of up to two and three digits for several years. In April and May, large-scale cryptocurrency acquisitions attracted investors, making them willing to pay hefty premiums for these listed companies. However, looking ahead, these ongoing and high-cost fee structures will weigh down shareholder returns.

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